First Quarter of 2011: Dräger increases net sales and earnings

Wednesday, 04. May 2011 07:30
Drägerwerk AG & Co. KGaA /
First Quarter of 2011: Dräger increases net sales and earnings
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* Earnings after income taxes grew 24 percent year-on-year
* Growth forecast confirmed
* Stefan Dräger: "Capital structure increases strategic scope of action"

Lübeck - Drägerwerk AG & Co. KGaA's order intake, net sales and earnings
increased in the first quarter of 2011. Order intake went up by 11.8 percent
(net of currency effects) to EUR 553.6 million year-on-year. Net sales rose by
5.7 percent (net of currency effects) to EUR 500.3 million, with particularly
positive developments in the Americas and Asia / Pacific regions. The safety
division recorded 9.1 percent growth (net of currency effects), net sales in the
medical divisions increased by 3.7 percent. "Given the good first quarter, we
are confirming our 2011 growth forecast," said Stefan Dräger, CEO of Drägerwerk
Verwaltungs AG.

EBIT margin rose to 8.5 percent
Dräger achieved total Group EBIT of EUR 42.6 million in the first quarter of
2011, an increase of 15.9 percent compared to the prior year's period. The EBIT
margin rose from 7.9 percent to 8.5 percent. Higher net sales, favorable
exchange rates and positive changes to the product mix contributed to the
development. As planned, these amounts were partially used as increased expenses
for research and development, marketing and sales as well as IT infrastructure.
Earnings after income taxes rose by 24 percent to EUR 23.2 million year-on-year.

Equity ratio went up to 33.1 percent
Dräger Group's equity rose by EUR 11.2 million to EUR 647.8 million in the first
three months of 2011, with the equity ratio increasing from 32.2 percent on
December 31, 2010, to 33.1 percent. On March 31, 2010, prior to the capital
increase, the equity ratio had been at 21.8 percent. "We have more strategic
scope of action as our equity is increasing. For this reason, we are aiming to
generate an equity ratio of at least 35 percent. We want to be ready for the
next slump of the global economy," highlighted Stefan Dräger.

Outlook: Order intake is expected to grow as fast as the overall global economy
Dräger expects its order intake in fiscal year 2011 to grow at least at the pace
of global economic growth (IMF April 2011 forecast: +4.4 percent). This is based
on the assumption of a stabilizing economy in Europe, continued economic
recovery in North America, sustained market growth in developing countries and
stable exchange rates. Lifecycle Solutions and Infrastructure Projects in
particular are likely to drive expected growth in the lower one-digit percentage
range in the medical division and compensate for a possible slowdown in the
equipment business. Dräger expects increases in net sales for the safety
division in the medium one-digit percentage range. According to the Executive
Board, net sales growth in the Group in 2011 is expected to be one to two
percentage points down on order intake growth as net sales in 2010 benefited
from above-average order intake in the fourth quarter of 2009. Based on planned
increases in product development investments, the expansion of the sales
organization and improvements to the Group-wide IT infrastructure, Dräger still
expects a Group EBIT margin between 7.5 percent and 8.5 percent for fiscal year
2011 (2010: 8.9 percent). In the medium term, the Company aims at growing
stronger than the market and achieving an EBIT margin of at least 10 percent.

Key figures for the first three months of 2011 (€ million)

|  |Q1 2011|Q1 2010|Change|Net of currency effects|
|Order intake | 553.6| 488.2|+13.4%| +11.8%|
|Medical division | 357.1| 323.6|+10.4%| +9.2%|
|Safety division | 204.0| 172.3|+18.4%| +16.1%|
|  |  |  |  |  |
|Net sales | 500.3| 465.9| +7.4%| +5.7%|
|Medical division | 321.6| 306.3| +5.0%| +3.7%|
|Safety division | 185.9| 167.0|+11.3%| +9.1%|
|  |  |  |  |  |
|EBIT[1] | 42.6| 36.8|+15.9%|  |
|Medical division | 30.6| 40.3|-24.1%|  |
|Safety division | 21.6| 12.7|+69.7%|  |
|  |  |  |  |  |
|EBIT margin | 8.5%| 7.9%|  |  |
|Earnings after income taxes| 23.2| 18.7|  |  |
|EPS[2] preferred share | 1.22| 1.38|  |  |
|EPS[2] common share | 1.20| 1.36|  |  |

[1] EBIT = Earnings before interest and taxes

[2] EPS = Earnings per share (in €)

This press release contains forward-looking statements regarding the future
development of the Dräger Group. These forward-looking statements are based on
the current expectations, presumptions, and forecasts of the Executive Board as
well as the information available to it to date and have been prepared to the
best of its knowledge and belief. No guarantee or liability for the occurrence
of the future developments and results specified can be assumed in respect of
such forward-looking statements. Rather, the future developments and results are
dependent on a number of factors. They entail risks and uncertainties beyond the
Company's control and are based on assumptions which could prove to be
incorrect. Notwithstanding any legal requirements to adjust forecasts, we assume
no obligation to update the forward-looking statements contained in this report.
You will find all other financial dates on our website under
Investor Center/Financial Calendar.


Corporate Communications:
Burkard Dillig
Phone: +49 451 882-2185

Investor Relations:
Vanina Hoffmann
Phone: +49 451 882-2685

Drägerwerk AG & Co. KgaA
Moislinger Allee 53-55
23558 Lübeck, Germany

--- End of Message ---

Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55 Lübeck Germany

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